[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/aue/wpaper/2211.html
   My bibliography  Save this paper

Economics of Incorporating Ecosystem Services into Water Resource Planning and Management

Author

Listed:
  • Angelos Alamanos
  • Phoebe Koundouri
Abstract
The broad economic notion of Ecosystem Services (ES) refers to the benefits that humans derive, directly or indirectly, from ecosystem functions. ES are directly related with Water Resources Management (WRM), as any catchment's degradation is in fact a degradation of ES, and the opposite. The concept initially had a pedagogical purpose, later it started being measured with economic methods, and has policy extensions, such as markets and payment schemes. ES's valuation is an essential process for achieving environmental, economic and sustainability goals, The Total Economic Value (TEV) of ecosystems includes market values (priced) and mainly non-market values (not explicit in any market), hence the different valuation methods for their explicit valuation. This process involves also human preferences regarding the perception of the nature's contribution to the economy, services, or production processes. ES concept and relevant policies have been criticised on the technical weaknesses of valuation methods, the description of the human behaviour, the interdisciplinary conflicts (e.g. ecological vs economic perception of value), and ethical aspects on the limits of the economic science, nature's commodification, and the purpose of the policy extents. Since valuation affects the policies (markets and payment schemes), it is important to understand the way that humans decide and develop preferences under uncertainty. Those preferences are changing, our behaviour is unpredictable under deep uncertainty (i.e. unknown policies, impacts, unknown probabilistic events, and under climate change) particularly over longer-term important WRM decisions. Behavioural Economics attempt to understand human behavior and psychology, and in a way model our valuation system, under uncertainty. The purpose and use of concept must be based on solid principles, aiming to the development of policies that will improve our ecosystems and lives, achieved by scientific and stakeholder collaboration.

Suggested Citation

  • Angelos Alamanos & Phoebe Koundouri, 2022. "Economics of Incorporating Ecosystem Services into Water Resource Planning and Management," DEOS Working Papers 2211, Athens University of Economics and Business.
    • Handle: RePEc:aue:wpaper:2211
    as

    Download full text from publisher

    File URL: http://wpa.deos.aueb.gr/docs/2022.Ecosystem.Services.pdf
    File Function: First version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Acharya, Ram Prasad & Maraseni, Tek & Cockfield, Geoff, 2019. "Global trend of forest ecosystem services valuation – An analysis of publications," Ecosystem Services, Elsevier, vol. 39(C).
    2. Torres-Miralles, M. & Grammatikopoulou, I. & Rescia, A.J., 2017. "Employing contingent and inferred valuation methods to evaluate the conservation of olive groves and associated ecosystem services in Andalusia (Spain)," Ecosystem Services, Elsevier, vol. 26(PA), pages 258-269.
    3. Campbell, Michael J. & Smith, Vernon L., 2021. "An elementary humanomics approach to boundedly rational quadratic models," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 562(C).
    4. Greg Murtough & Barbara Aretino & Anna Matysek, 2002. "Creating markets for ecosystem services," Urban/Regional 0207001, University Library of Munich, Germany.
    5. Fisher, Brendan & Turner, R. Kerry & Morling, Paul, 2009. "Defining and classifying ecosystem services for decision making," Ecological Economics, Elsevier, vol. 68(3), pages 643-653, January.
    6. Kumar, Manasi & Kumar, Pushpam, 2008. "Valuation of the ecosystem services: A psycho-cultural perspective," Ecological Economics, Elsevier, vol. 64(4), pages 808-819, February.
    7. Schomers, Sarah & Matzdorf, Bettina, 2013. "Payments for ecosystem services: A review and comparison of developing and industrialized countries," Ecosystem Services, Elsevier, vol. 6(C), pages 16-30.
    8. Bin, Okmyung & Polasky, Stephen, 2005. "Evidence on the Amenity Value of Wetlands in a Rural Setting," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 37(3), pages 589-602, December.
    9. Costanza, Robert & Farber, Steve, 2002. "Introduction to the special issue on the dynamics and value of ecosystem services: integrating economic and ecological perspectives," Ecological Economics, Elsevier, vol. 41(3), pages 367-373, June.
    10. Farley, Joshua, 2012. "Ecosystem services: The economics debate," Ecosystem Services, Elsevier, vol. 1(1), pages 40-49.
    11. Kadykalo, Andrew N. & Findlay, C. Scott, 2016. "The flow regulation services of wetlands," Ecosystem Services, Elsevier, vol. 20(C), pages 91-103.
    12. Bulte, Erwin H. & Lipper, Leslie & Stringer, Randy & Zilberman, David, 2008. "Payments for ecosystem services and poverty reduction: concepts, issues, and empirical perspectives," Environment and Development Economics, Cambridge University Press, vol. 13(3), pages 245-254, June.
    13. Wam, Hilde Karine & Bunnefeld, Nils & Clarke, Nicholas & Hofstad, Ole, 2016. "Conflicting interests of ecosystem services: Multi-criteria modelling and indirect evaluation of trade-offs between monetary and non-monetary measures," Ecosystem Services, Elsevier, vol. 22(PB), pages 280-288.
    14. Farber, Stephen C. & Costanza, Robert & Wilson, Matthew A., 2002. "Economic and ecological concepts for valuing ecosystem services," Ecological Economics, Elsevier, vol. 41(3), pages 375-392, June.
    15. Schmidt, Katja & Walz, Ariane & Martín-López, Berta & Sachse, René, 2017. "Testing socio-cultural valuation methods of ecosystem services to explain land use preferences," Ecosystem Services, Elsevier, vol. 26(PA), pages 270-288.
    16. Hackbart, Vivian C.S. & de Lima, Guilherme T.N.P. & dos Santos, Rozely F., 2017. "Theory and practice of water ecosystem services valuation: Where are we going?," Ecosystem Services, Elsevier, vol. 23(C), pages 218-227.
    17. Hansjürgens, Bernd & Schröter-Schlaack, Christoph & Berghöfer, Augustin & Lienhoop, Nele, 2016. "Reprint:Justifying social values of nature: Economic reasoning beyond self-interested preferences," Ecosystem Services, Elsevier, vol. 22(PB), pages 228-237.
    18. de Groot, Rudolf S. & Wilson, Matthew A. & Boumans, Roelof M. J., 2002. "A typology for the classification, description and valuation of ecosystem functions, goods and services," Ecological Economics, Elsevier, vol. 41(3), pages 393-408, June.
    19. Howarth, Richard B. & Farber, Stephen, 2002. "Accounting for the value of ecosystem services," Ecological Economics, Elsevier, vol. 41(3), pages 421-429, June.
    20. Ribaudo, Marc & Greene, Catherine & Hansen, LeRoy & Hellerstein, Daniel, 2010. "Ecosystem services from agriculture: Steps for expanding markets," Ecological Economics, Elsevier, vol. 69(11), pages 2085-2092, September.
    21. Edward B. Barbier, 2013. "Valuing Ecosystem Services for Coastal Wetland Protection and Restoration: Progress and Challenges," Resources, MDPI, vol. 2(3), pages 1-18, August.
    22. Ming, Jiang & Xian-guo, Lu & Lin-shu, Xu & Li-juan, Chu & Shouzheng, Tong, 2007. "Flood mitigation benefit of wetland soil -- A case study in Momoge National Nature Reserve in China," Ecological Economics, Elsevier, vol. 61(2-3), pages 217-223, March.
    23. Murtough, Greg & Aretino, Barbara & Matysek, Anna, 2002. "Creating Markets for Ecosystem Services," Staff Research Papers 31912, Productivity Commission.
    24. Gómez-Baggethun, Erik & de Groot, Rudolf & Lomas, Pedro L. & Montes, Carlos, 2010. "The history of ecosystem services in economic theory and practice: From early notions to markets and payment schemes," Ecological Economics, Elsevier, vol. 69(6), pages 1209-1218, April.
    25. Turpie, J.K. & Marais, C. & Blignaut, J.N., 2008. "The working for water programme: Evolution of a payments for ecosystem services mechanism that addresses both poverty and ecosystem service delivery in South Africa," Ecological Economics, Elsevier, vol. 65(4), pages 788-798, May.
    26. Barth, Nina-Christin & Döll, Petra, 2016. "Assessing the ecosystem service flood protection of a riparian forest by applying a cascade approach," Ecosystem Services, Elsevier, vol. 21(PA), pages 39-52.
    27. Pamela McElwee & Bernhard Huber & Thị Hải Vân Nguyễn, 2020. "Hybrid Outcomes of Payments for Ecosystem Services Policies in Vietnam: Between Theory and Practice," Development and Change, International Institute of Social Studies, vol. 51(1), pages 253-280, January.
    28. Farley, Joshua & Costanza, Robert, 2010. "Payments for ecosystem services: From local to global," Ecological Economics, Elsevier, vol. 69(11), pages 2060-2068, September.
    29. Deal, Robert L. & Cochran, Bobby & LaRocco, Gina, 2012. "Bundling of ecosystem services to increase forestland value and enhance sustainable forest management," Forest Policy and Economics, Elsevier, vol. 17(C), pages 69-76.
    30. Pandeya, B. & Buytaert, W. & Zulkafli, Z. & Karpouzoglou, T. & Mao, F. & Hannah, D.M., 2016. "A comparative analysis of ecosystem services valuation approaches for application at the local scale and in data scarce regions," Ecosystem Services, Elsevier, vol. 22(PB), pages 250-259.
    31. Leimona, Beria & van Noordwijk, Meine & de Groot, Rudolf & Leemans, Rik, 2015. "Fairly efficient, efficiently fair: Lessons from designing and testing payment schemes for ecosystem services in Asia," Ecosystem Services, Elsevier, vol. 12(C), pages 16-28.
    32. Corbera, Esteve & Brown, Katrina, 2008. "Building Institutions to Trade Ecosystem Services: Marketing Forest Carbon in Mexico," World Development, Elsevier, vol. 36(10), pages 1956-1979, October.
    33. Schmidt, Katja & Martín-López, Berta & Phillips, Peter M. & Julius, Eike & Makan, Neville & Walz, Ariane, 2019. "Key landscape features in the provision of ecosystem services: Insights for management," Land Use Policy, Elsevier, vol. 82(C), pages 353-366.
    34. Pattison-Williams, John K. & Pomeroy, John W. & Badiou, Pascal & Gabor, Shane, 2018. "Wetlands, Flood Control and Ecosystem Services in the Smith Creek Drainage Basin: A Case Study in Saskatchewan, Canada," Ecological Economics, Elsevier, vol. 147(C), pages 36-47.
    35. Häyhä, Tiina & Franzese, Pier Paolo, 2014. "Ecosystem services assessment: A review under an ecological-economic and systems perspective," Ecological Modelling, Elsevier, vol. 289(C), pages 124-132.
    36. A. Alamanos & D. Latinopoulos & A. Loukas & N. Mylopoulos, 2020. "Comparing Two Hydro-Economic Approaches for Multi-Objective Agricultural Water Resources Planning," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 34(14), pages 4511-4526, November.
    37. Stephen Farber, 1996. "Welfare Loss Of Wetlands Disintegration: A Louisiana Study," Contemporary Economic Policy, Western Economic Association International, vol. 14(1), pages 92-106, January.
    38. Costanza, Robert & Farber, Stephen C. & Maxwell, Judith, 1989. "Valuation and management of wetland ecosystems," Ecological Economics, Elsevier, vol. 1(4), pages 335-361, December.
    39. Swinton, Scott M. & Lupi, Frank & Robertson, G. Philip & Hamilton, Stephen K., 2007. "Ecosystem services and agriculture: Cultivating agricultural ecosystems for diverse benefits," Ecological Economics, Elsevier, vol. 64(2), pages 245-252, December.
    40. Winkler, Ralph, 2006. "Valuation of ecosystem goods and services: Part 1: An integrated dynamic approach," Ecological Economics, Elsevier, vol. 59(1), pages 82-93, August.
    41. Sagoff, Mark, 2011. "The quantification and valuation of ecosystem services," Ecological Economics, Elsevier, vol. 70(3), pages 497-502, January.
    42. Winkler, Ralph, 2006. "Valuation of ecosystem goods and services: Part 2: Implications of unpredictable novel change," Ecological Economics, Elsevier, vol. 59(1), pages 94-105, August.
    43. Jie He & Jérôme Dupras & Thomas G. Poder, 2017. "The value of wetlands in Quebec: a comparison between contingent valuation and choice experiment," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 6(1), pages 51-78, January.
    44. James Salzman & Genevieve Bennett & Nathaniel Carroll & Allie Goldstein & Michael Jenkins, 2018. "The global status and trends of Payments for Ecosystem Services," Nature Sustainability, Nature, vol. 1(3), pages 136-144, March.
    45. Villa, Ferdinando & Wilson, Matthew A. & de Groot, Rudolf & Farber, Steven & Costanza, Robert & Boumans, Roelof M. J., 2002. "Designing an integrated knowledge base to support ecosystem services valuation," Ecological Economics, Elsevier, vol. 41(3), pages 445-456, June.
    46. Kathleen McAfee, 2012. "The Contradictory Logic of Global Ecosystem Services Markets," Development and Change, International Institute of Social Studies, vol. 43(1), pages 105-131, January.
    47. Galati, Antonino & Crescimanno, Maria & Gristina, Luciano & Keesstra, Saskia & Novara, Agata, 2016. "Actual provision as an alternative criterion to improve the efficiency of payments for ecosystem services for C sequestration in semiarid vineyards," Agricultural Systems, Elsevier, vol. 144(C), pages 58-64.
    48. Kroeger, Timm & Casey, Frank, 2007. "An assessment of market-based approaches to providing ecosystem services on agricultural lands," Ecological Economics, Elsevier, vol. 64(2), pages 321-332, December.
    49. Watson, Keri B. & Ricketts, Taylor & Galford, Gillian & Polasky, Stephen & O'Niel-Dunne, Jarlath, 2016. "Quantifying flood mitigation services: The economic value of Otter Creek wetlands and floodplains to Middlebury, VT," Ecological Economics, Elsevier, vol. 130(C), pages 16-24.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Phoebe Koundouri & George Halkos & Conrad Landis & Angelos Alamanos, 2023. "Ecosystem Services Valuation for supporting Sustainable Life Below Water," DEOS Working Papers 2316, Athens University of Economics and Business.
    2. Phoebe Koundouri & Angelos Alamanos & Kostas Dellis & Artemis Stratopoulou, 2022. "Ecosystem Services into Water Resource Planning and Management," DEOS Working Papers 2230, Athens University of Economics and Business.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Phoebe Koundouri & Angelos Alamanos & Kostas Dellis & Artemis Stratopoulou, 2022. "Ecosystem Services into Water Resource Planning and Management," DEOS Working Papers 2230, Athens University of Economics and Business.
    2. Phoebe Koundouri & Konstantinos Dellis & Olympia Miziaki, 2024. "The multi-faceted effects of green innovation in the crop & livestock sector in Greece: Evidence with the FABLE Calculator," DEOS Working Papers 2412, Athens University of Economics and Business.
    3. Valencia Torres, Angélica & Tiwari, Chetan & Atkinson, Samuel F., 2021. "Progress in ecosystem services research: A guide for scholars and practitioners," Ecosystem Services, Elsevier, vol. 49(C).
    4. Häyhä, Tiina & Franzese, Pier Paolo, 2014. "Ecosystem services assessment: A review under an ecological-economic and systems perspective," Ecological Modelling, Elsevier, vol. 289(C), pages 124-132.
    5. Mulatu, Dawit W. & van der Veen, Anne & van Oel, Pieter R., 2014. "Farm households' preferences for collective and individual actions to improve water-related ecosystem services: The Lake Naivasha basin, Kenya," Ecosystem Services, Elsevier, vol. 7(C), pages 22-33.
    6. Kumar, Pushpam & Kumar, Manasi & Garrett, Lucy, 2014. "Behavioural foundation of response policies for ecosystem management: What can we learn from Payments for Ecosystem Services (PES)," Ecosystem Services, Elsevier, vol. 10(C), pages 128-136.
    7. Turner, Katrine Grace & Anderson, Sharolyn & Gonzales-Chang, Mauricio & Costanza, Robert & Courville, Sasha & Dalgaard, Tommy & Dominati, Estelle & Kubiszewski, Ida & Ogilvy, Sue & Porfirio, Luciana &, 2016. "A review of methods, data, and models to assess changes in the value of ecosystem services from land degradation and restoration," Ecological Modelling, Elsevier, vol. 319(C), pages 190-207.
    8. Häyhä, Tiina & Franzese, Pier Paolo & Paletto, Alessandro & Fath, Brian D., 2015. "Assessing, valuing, and mapping ecosystem services in Alpine forests," Ecosystem Services, Elsevier, vol. 14(C), pages 12-23.
    9. Hejnowicz, Adam P. & Raffaelli, David G. & Rudd, Murray A. & White, Piran C.L., 2014. "Evaluating the outcomes of payments for ecosystem services programmes using a capital asset framework," Ecosystem Services, Elsevier, vol. 9(C), pages 83-97.
    10. Spangenberg, Joachim H. & von Haaren, Christina & Settele, Josef, 2014. "The ecosystem service cascade: Further developing the metaphor. Integrating societal processes to accommodate social processes and planning, and the case of bioenergy," Ecological Economics, Elsevier, vol. 104(C), pages 22-32.
    11. Peer von Döhren & Dagmar Haase, 2023. "Ecosystem Services for Planning Post-Mining Landscapes Using the DPSIR Framework," Land, MDPI, vol. 12(5), pages 1-15, May.
    12. Coria, Jessica & Robinson, Elizabeth & Smith, Henrik G. & Sterner, Thomas, 2012. "Biodiversity Conservation and Ecosystem Services Provision: Tale of Confused Objectives, Multiple Market Failures and Policy Challenges," Working Papers in Economics 546, University of Gothenburg, Department of Economics.
    13. Benjamin S. Thompson, 2021. "Corporate Payments for Ecosystem Services in Theory and Practice: Links to Economics, Business, and Sustainability," Sustainability, MDPI, vol. 13(15), pages 1-18, July.
    14. Acharya, Ram Prasad & Maraseni, Tek & Cockfield, Geoff, 2019. "Global trend of forest ecosystem services valuation – An analysis of publications," Ecosystem Services, Elsevier, vol. 39(C).
    15. Adam P. Hejnowicz & Murray A. Rudd, 2017. "The Value Landscape in Ecosystem Services: Value, Value Wherefore Art Thou Value?," Sustainability, MDPI, vol. 9(5), pages 1-34, May.
    16. Ola, Oreoluwa & Menapace, Luisa & Benjamin, Emmanuel & Lang, Hannes, 2019. "Determinants of the environmental conservation and poverty alleviation objectives of Payments for Ecosystem Services (PES) programs," Ecosystem Services, Elsevier, vol. 35(C), pages 52-66.
    17. Jacobs, Sander & Dendoncker, Nicolas & Martín-López, Berta & Barton, David Nicholas & Gomez-Baggethun, Erik & Boeraeve, Fanny & McGrath, Francesca L. & Vierikko, Kati & Geneletti, Davide & Sevecke, Ka, 2016. "A new valuation school: Integrating diverse values of nature in resource and land use decisions," Ecosystem Services, Elsevier, vol. 22(PB), pages 213-220.
    18. Hao Wang & Sander Meijerink & Erwin van der Krabben, 2020. "Institutional Design and Performance of Markets for Watershed Ecosystem Services: A Systematic Literature Review," Sustainability, MDPI, vol. 12(16), pages 1-26, August.
    19. Sandhu, Harpinder S. & Crossman, Neville D. & Smith, F. Patrick, 2012. "Ecosystem services and Australian agricultural enterprises," Ecological Economics, Elsevier, vol. 74(C), pages 19-26.
    20. Imran Khan & Hongdou Lei & Gaffar Ali & Shahid Ali & Minjuan Zhao, 2019. "Public Attitudes, Preferences and Willingness to Pay for River Ecosystem Services," IJERPH, MDPI, vol. 16(19), pages 1-17, October.

    More about this item

    JEL classification:

    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aue:wpaper:2211. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ekaterini Glynou (email available below). General contact details of provider: https://edirc.repec.org/data/diauegr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.